Defense Verdict Secured in Contentious Fire Loss Case

We obtained a hard fought defense verdict in a contentious case involving a total fire loss at a duplex owned by a single mother. The investigation revealed that the named insured did not reside in the home and, instead, rented the two units. The claim denial included application misrepresentations and issues related to the fact that the insured property did not meet the policy’s definition of a “residence premises.” Ultimately, the court decided that the property did meet the “residence premises” definition. We were left to try the case based on material misrepresentations and tasked with convincing the jury that a single mother, who paid her premium and suffered an accidental and total fire loss, should be precluded from recovery. The jury disregarded the sympathetic plaintiff, believed the insured lied during the investigation and applied New Jersey insurance law on material misrepresentations as instructed by the court. The plaintiff had turned down $150K prior to trial.